U.S. corn ethanol "was not a good policy" - Gore

ATHENS, Nov 22 (Reuters) - Former U.S. vice-president Al Gore said support
for corn-based ethanol in the United States was "not a good policy", weeks
before tax credits are up for renewal. U.S. blending tax breaks for ethanol
make it profitable for refiners to use the fuel even when it is more expensive
than gasoline. The credits are up for renewal on Dec. 31.

Total U.S. ethanol subsidies reached $7.7 billion last year according to the
International Energy Industry, which said biofuels worldwide received more
subsidies than any other form of renewable energy.

"It is not a good policy to have these massive subsidies for (U.S.) first
generation ethanol," said Gore, speaking at a green energy business conference
in Athens sponsored by Marfin Popular Bank.

"First generation ethanol I think was a mistake. The energy conversion
ratios are at best very small.

"It's hard once such a programme is put in place to deal with the lobbies
that keep it going."

He explained his own support for the original programme on his presidential
ambitions.

"One of the reasons I made that mistake is that I paid particular attention
to the farmers in my home state of Tennessee, and I had a certain fondness
for the farmers in the state of Iowa because I was about to run for president."

U.S. ethanol is made by extracting sugar from corn, an energy-intensive process.
The U.S. ethanol industry will consume about 41 percent of the U.S. corn crop
this year, or 15 percent of the global corn crop, according to Goldman Sachs
analysts.

A food-versus-fuel debate erupted in 2008, in the wake of record food prices,
where the biofuel industry was criticised for helping stoke food prices.

Gore said a range of factors had contributed to that food price crisis, including
drought in Australia, but said there was no doubt biofuels have an effect.

"The size, the percentage of corn particularly, which is now being (used
for) first generation ethanol definitely has an impact on food prices.

"The competition with food prices is real."

Gore supported so-called second generation technologies which do not compete
with food, for example cellulosic technologies which use chemicals or enzymes
to extract sugar from fibre for example in wood, waste or grass.

"I do think second and third generation that don't compete with food prices
will play an increasing role, certainly with aviation fuels."

Gore added did that he did not expect a U.S. clean energy or climate bill
for "at least two years" following the mid-term elections which saw Republicans
increase their support.

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